theck my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to questiu Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: a. As of December 31 (the end of the prior quarter), the company's general ledger showed the following account balances: Cash Accounts receivable Inventory Buildings and equipment (net) Accounts payable Common stock Retained earnings $ 58,000 214,400 60,450 368,000 $ 90,525 500,000 110,325 $ 700,850 $ 700,050 b. Actual sales for December and budgeted sales for the next four months are as follows: December (actual) January February March April $268,000 $403,000 $600,000 $315,000 $211,000 my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales d. The company's gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.) e. Monthly expenses are budgeted as follows: salaries and wages, $33,000 per month: advertising, $63,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $44,980 for the quarter. f. Each month's ending inventory should equal 25% of the following month's cost of goods sold. 9. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid in the following month. h. During February, the company will purchase a new copy machine for $2,800 cash. During March, other equipment will be purchased for cash at a cost of $79,000. 1. During January, the company will declare and pay $45,000 in cash dividends J. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: Using the data above, complete the following statements and schedules for the first quarter 1. Schedule of expected cash collections: 2-a. Merchandise purchases budget: 2-b. Schedule of expected cash disbursements for merchandise purchases: 3. Cash budget 4. Prepare an absorption costing income statement for the quarter ending March 31, 5. Prepare a balance sheet as of March 31, Return to que 5. Prepare a balance sheet as of March 31. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 5 Required 1 Required 2A Required 2B Required 3 Required 4 Complete the Schedule of expected cash collections: Schedule of Expected Cash Collections January February March Quarter Cash sales $ 80,600 $ 120,000 $ 63,000 $ 263,600 Credit sales 214,400 322,400 480,000 1,016,800 $ $ Total collections $ 442,400 295,000 543,000 1,280,400 Required: Required 2A > Nec 5. Prepare a balance sheet as of March 31. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 4 Required 5 March Required 1 Required 2A Required 2B Required 3 Complete the merchandise purchases budget: Merchandise Purchases Budget January February Budgeted cost of goods sold $241,800" $360,000 Add desired ending inventory 90,0001 47.250 Total needs 331,800 407.250 Less beginning inventory 60.450 90,000 Required purchases $ 271,350 $ 317,250 *$403,000 sales * 60% cost ratio = $241,800. 1$360,000 * 25% = $90,000 189.000 31,650 220,650 47,250 $ 173,400 Quarter $ 790,800 168,900 959,700 197.700 762,000 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2A Required 28 Required 3 Required 5 Required 4 Complete the schedule of expected cash disbursements for merchandise purchases. Schedule of Expected Cash Disbursements for Merchandise Purchases January February March Quarter December purchases $ 90,525 $ 90,525 January purchases 135,675 135,675 271,350 February purchases 158,625 158,625 317.250 March purchases 86,700 86,700 Total cash disbursements for purchases 226,200 $ 294,300 245.325 765,825 kequired ZA Kequirea s Kequired Requirea 1 Required 25 Required 4 $ Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Hillyard Company Cast. Budget January February March Quarter Beginning cash balance $ 58,000 $ 30,000 31,300 $ 58,000 Add collections from customers 295.000 442,400 543,000 1,280,400 Total cash available 353,000 472,400 574,300 1,338,400 Loss cash disbursements: Inventory purchases 226,200 294,300 245,325 765,825 Selling and administrative expenses 128.240 144,000 121,200 393,440 Equipment purchases 2,800 81,800 Cash dividends 45,000 45,000 Total cash disbursements 399,440 441,100 366,525 1,286,065 Excots (deficiency) of cash (46,440) 31,300 207.775 52,335 Financing: Borrowings 155,440 155,440 Repayments 160,103 160,103 Interest 1,554 1,554 1,554 Total financing 156,994 1,554 161,657 315,543 Hillyard Company Income Statement For the Quarter Ended March 31 $ 1,318,000 Sales Cost of goods sold: + 0 0 0 99,000 >> Selling and administrative expenses Salaries and wages Advertising Shipping Interest expense Other expenses Depreciation > 189,000 65,900 4,663 X 39,540 0x000 44,980 443,083 (443,083) Is (443.083) Balance Sheet March 31 Assets Current assets: Cash $ 47,672 252,000 Accounts receivable Inventory 31.650 331,322 404,820 736,142 $ Total current assets Buildings and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 86,700 Stockholders' equity: Common stock Retained earnings 500,000 149,442 649,442